DAY HAGAN TECH TALK: JUNE 25, 2019
Bottom Line: International and emerging markets are benefiting from a U.S. Dollar Index breakdown. While our models prefer domestic markets (they update 7/1/19), when analyzing the Pring Global Advance-Decline Line, the absolute and relative price trends of various international and emerging markets have stabilized and/or strengthened. On pullbacks of between 1% and 5%, this situation spells “opportunity.”
Chart of Interest: Broadly speaking, the commodities market are also benefiting from a weaker U.S. dollar. As highlighted in our webinar early last week (prior to the Fed announcement and subsequent decline by the U.S. Dollar Index and interest rates), Gold is emerging out of a lengthy trading range pattern and outperforming the Reuters/Jeffries CRB Index. As stated by a few articles I read, “adding gold to the portfolio mix as a method to balance risk and volatility” makes sense, and you should “use weakness opportunistically” while managing downside risk!
Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management
— Written intraday 06.24.2019. Chart sources: StockCharts.
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